Elon Musk Is At It Again – Jalopnik

Happy Tuesday! It’s July 1, 2025, and that is The Morning Shift, your day by day roundup of the highest automotive headlines from all over the world, in a single place. This is the place you will discover an important tales which can be shaping the way in which Americans drive and get round.

In this morning’s version, we’re Elon Musk’s newest Twitter spat with President Donald Trump, in addition to what’s occurring to Elon Musk’s automobile firm whereas he is busy having Twitter spats with the President. We’ll additionally take a look at the Senate’s desperation to finish the $7,500 EV tax credit score, and the brand new ready listing for Xiaomi’s SU7. 

Elon Musk paid 9 figures to make sure Donald Trump received a second time period as President, regardless of the latter’s overtly anti-EV stance. Now, Trump is pushing a funds invoice that cuts funding for EV tax credit, and Musk is upset that his 9 figures did not purchase him full and utter loyalty. From Automotive News:

Tesla CEO Elon Musk renewed his feud with President Donald Trump over the Republican funds invoice advancing via Congress, with Musk floating a brand new political occasion and Trump mocking his former adviser for taking authorities subsidies.

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In posts on X Monday, Musk blamed Republicans and Democrats for rising nationwide debt and steered he’d begin “the America Party” if the invoice handed. Musk, the world’s richest individual, spent over $250 million to help Republicans within the Nov. 5 election.

“Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE,” Musk posted June 30. “It is obvious with the insane spending of this bill … that we live in a one-party country — the PORKY PIG PARTY!!”

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“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites or Electric Car Production.”

Trump steered DOGE might look into the subsidies that profit Musk’s firms. “BIG MONEY TO BE SAVED!!!”

The richest man on this planet and the (arguably) strongest man on this planet are yelling at one another on the social media platforms they each personal. Where did we go mistaken? How did we get right here? Is it doable to come back again from this? 

Musk is true to be afraid of the funds invoice, as a result of his automobile firm is struggling sufficient as it’s. Shoppers are avoiding Tesla each due to the CEO’s rancid politics, which he funds with Tesla cash, in addition to the truth that Tesla’s vehicles are merely previous and cheap-feeling. From Reuters: 

Tesla is anticipated to report one other fall in quarterly deliveries on Wednesday because the backlash towards CEO Elon Musk’s political beliefs and aggressive pressures proceed to tug on demand.

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Though Musk has shifted his focus again to his firms, the backlash, together with clients selecting cheaper Chinese EVs, led to the fifth straight month of falling gross sales for Tesla in Europe, with a 27.9% drop in May, knowledge from the European Automobile Manufacturers Association confirmed.

In China, Tesla’s share of the EV market has fallen to 7.6% for the primary 5 months of 2025, from 10% final yr and a peak of 15% in 2020, as rivals received over shoppers with snazzy, new, feature-packed EVs. Xiaomi’s YU7 SUV obtained exceptionally robust orders hours after occurring sale final week and fanned hypothesis that Tesla might have to chop costs to combat again.

You imply you’ll be able to’t simply promote the identical vehicles for years on finish with out substantial updates in a tech-driven area that is quickly maturing, whereas additionally politically alienating a lot of your buyer base? Says who?

The Senate is presently making ready to vote on the One Big Beautiful Bill which might reduce EV tax credit. It appears, although, that senators cannot fairly agree on one core piece of the laws: How fast they’ll get these pesky tax credit out of there. From Automotive News:

The Senate is planning to as soon as once more speed up the tip of the $7,500 new electrical car tax credit score within the proposed laws, this time to Sept. 30, 2025.

A previous model of the Senate funds invoice textual content would have eradicated the tax credit score 180 days after passage. A House model of the funds invoice would have eradicated the credit score on the finish of the yr.

The Senate’s speedier timeline highlights how Congress is keen to buck the desires of automakers and sellers who’ve advocated for a runway to dump EV stock utilizing the credit score.

The invoice will increase costs on EVs — seemingly our solely viable half-measure in direction of the continued habitability of our planet — and strip hundreds of thousands of their Medicare to be able to fund tax cuts for the rich and a nightmarish, authoritarian Customs and Border Patrol detention and deportation program. It will move, it is only a matter of the specifics. You thought the Twitter beef was why we reside in hell? No, no, it is worse than that. 

Xiaomi opened orders for its YU7 crossover final week, and the automobile’s turned out to be widespread to this point — almost 1 / 4 million folks have put their cash right down to preorder one. There’s only one small drawback with its recognition: Xiaomi has neither the stock nor the manufacturing capability to ship on these orders in a well timed method. From Reuters:

China’s Xiaomi is telling clients of its new YU7 electrical sports activities utility car they should wait greater than a yr to obtain their vehicles, sparking a recent wave of complaints towards the corporate.

The smartphone turned EV maker mentioned it obtained roughly 240,000 orders for the YU7 within the first 18 hours after the automobile went on sale on Thursday night time, however solely a small variety of automobiles have been accessible for speedy supply.

By Tuesday, the Xiaomi app confirmed purchasers have been going through a wait of between 38 and 60 weeks, based on Reuters checks.

The YU7 is without doubt one of the better-looking crossovers available on the market, so it is comprehensible that folk would flock to it. Just take a look at that pink colorway on the correct, and inform me you would be sad to see that in your driveway. 

Canada Day is a a lot better title than our Independence Day. The U.S. time period is so obscure and broad, Canada Day tells you precisely what is going on on. Ours has a greater film, although. 

You ever have a morning the place you learn the information too quickly after waking up, and abruptly you are caught in a really particular musical style all day? That’s me this morning.